Hard Money Loans in Kingston
An incredible buy on a fix and flip opportunity located in a very good neighborhood all of a sudden shows up — seems so good that it's difficult to believe. Professional residential home flippers, such as the young couple on Flip or Flop, HGTV's reality flipping series, are able to generate a profit of $40-$50k on most projects. Without question, their past experiences rehabbing, knowledge of hard money loans, familiarity with the market, and auction talents have been large factors to their results. Nonetheless, your rehab and renovation skills aren't bad either — besides, you have already identified a suitable licensed contractor to tackle this project.
But how do real estate investors find capital? Should you approach a regular lending institution, like a bank for funding, it can take, at a minimum, 30-60 days for the approval to be completed and your funds to be given out. With the sellers seeking a fast closing, that does not seem like a good idea to you whatsoever.
What's more, if you have a sub-optimal credit rating or don't receive a routine source of income, it can be tougher to obtain bank financing, considering the more stringent loan guidelines banks have issued in recent times. So does that leave you with no other option, but to abandon your ambition to venture into home renovating? Certainly not, considering that you can always go the Kingston, Massachusetts hard money loan route to finance your home flipping project.
A hard money home loan in Kingston can provide what's viewed as crucial to most real estate deals — a very fast closing of only a few weeks and more often than not less. Additionally, loan amounts can be done for up to 70% loan-to-value of the "as is" home's valuation, as calculated by a licensed appraiser. Some people consider hard money real estate loans to be higher priced than regular loans, since the lending rates for such loans generally start at 10%. But the time frames of these loans are quite short, which makes the interest rate far less significant. The price tag on such short-term loans ought to be considered much like any other cost that you would need to meet for the project. Once you've turned the home and have made a successful return, you're able to reclaim this expense from the house — much like recovering the cost of brand-new home appliances that you have installed.
Besides, hard money mortgages are not difficult to qualify for, whether or not you have less-than-perfect credit. Instead of focusing exclusively on the person's credit score or net income, Kingston hard money lenders, who can be a private company or an individual person, authorize a loan after examining the property value, ease of marketability, its location, and the likelihood of getting back their money if they have to foreclose the loan. The total amount that a borrower can put down beforehand towards the home, his real estate experience, and selling price of equivalent homes in the same vicinity are additional factors that go into analyzing a borrower's eligibility for a hard money real estate loan.
So any time you come across a really good and worthwhile investment opportunity, relax knowing you will have a hard money lender in Kingston, prepared to lend you the funds you need. Submit the form or give us a call to talk about your property or properties.
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